72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1779
House Bill 2914
Sponsored by COMMITTEE ON AGRICULTURE AND NATURAL RESOURCES
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Abolishes Oregon Forest Resources Institute.
Establishes requirements organization must meet to be qualified
forestry resource organization. Directs State Forester to qualify
organization that meets requirements.
Continues existing forest products harvest tax. Creates credit
against forest products harvest tax equal to lesser of amount of
forest products harvest tax or donation to qualified forestry
resource organization.
A BILL FOR AN ACT
Relating to forestry; creating new provisions; amending ORS
321.015, 321.017, 321.145, 321.152 and 321.684; repealing ORS
321.017, 526.600, 526.605, 526.610, 526.615, 526.620, 526.625,
526.630, 526.632, 526.635, 526.640, 526.645, 526.650, 526.655,
526.660, 526.665, 526.670, 526.675, 526.680 and 526.685; and
providing for revenue raising that requires approval by a
three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 321.015 is amended to read:
321.015. (1) For the calendar years beginning January 1, 2002,
and January 1, 2003, there is levied a privilege tax of 67 cents
per thousand feet, board measure, upon taxpayers for the
privilege of harvesting of all merchantable forest products
harvested on forestlands. Subject to ORS 321.145, the proceeds of
the tax shall be transferred as provided in ORS 321.152 (2) to
the Forest Research and Experiment Account for use for the forest
resource research, experimentation and studies described in ORS
526.215 and for the Forest Research Laboratory established under
ORS 526.225.
(2) Except as provided in ORS 477.760, in addition to the tax
levied by subsection (1) of this section, there hereby is levied
a forest products harvest tax upon taxpayers of 50 cents per
thousand feet, board measure, for the privilege of harvesting all
merchantable forest products harvested on forestlands for the
payment of benefits related to fire suppression as provided in
ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to
477.460.
(3) For the calendar years beginning January 1, 2002, and
January 1, 2003, in addition to the taxes levied under
subsections (1) and (2) of this section, there hereby is levied a
privilege tax upon taxpayers for the privilege of harvesting all
merchantable forest products harvested on forestlands in the
amount of 91 cents per thousand feet, board measure, for the
purpose of administering the Oregon Forest Practices Act in an
amount not to exceed 40 percent of the total expenditures
approved by the Legislative Assembly for this purpose, including
salary adjustments approved by the Legislative Assembly for
fiscal years 2002 and 2003.
(4) For the calendar years beginning January 1, 2000, and
January 1, 2001, in addition to the taxes levied under
subsections (1) to (3) of this section, there hereby is levied a
privilege tax upon taxpayers for the privilege of harvesting all
merchantable forest products harvested on forestlands in the
amount of 15 cents per thousand feet, board measure, for the
purpose of providing assistance to nonindustrial private
landowners described in ORS 526.425 and 526.450 to 526.475. All
revenues received under this subsection and any interest earned
on the cash balance shall be credited to the State Forestry
Department Account and may be expended only for assistance to the
nonindustrial private forest landowners.
{ + (5)(a) In addition to the taxes levied under subsections
(1) to (4) of this section, there is hereby levied a privilege
tax upon taxpayers for the privilege of harvesting all
merchantable forest products harvested on forestlands in the
amount of 99 cents per thousand feet, board measure, to be
distributed as provided in ORS 321.152.
(b)(A) The tax set forth in paragraph (a) of this subsection
shall be subject to an annual cost-of-living adjustment, to be
effective as of January 1 of each calendar year after 2004.
(B) The cost-of-living adjustment for any calendar year is the
percentage (if any) by which the monthly averaged U.S. City
Average Consumer Price Index for the 12 consecutive months ending
August 31 of the prior calendar year exceeds the monthly averaged
index for the 12 consecutive months ending August 31, 2004.
(C) As used in this paragraph, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor. + }
{ - (5) - } { + (6) + } Subject to subsection { - (6) - }
{ + (7) + } of this section, the taxes shall be measured by and
be applicable to each per thousand feet, board measure, on the
total quantity of forest products harvested in this state
measured by use of any log scale which is or may be in general
use in the logging industry and which is designed to measure
total volume of merchantable forest products in board feet.
However, if the Department of Revenue finds that the scale used
by any taxpayer in computing the taxes due under ORS 321.005 to
321.185 and 321.560 to 321.600 does not accurately reflect the
total quantity of merchantable forest products harvested by the
taxpayer, it may require the taxpayer to adopt another log scale
in general use in the industry which in the department's opinion
will accurately reflect merchantable harvest in board feet.
{ - (6) - } { + (7) + } The first 25,000 feet, board
measure, of forest products harvested annually by any taxpayer
during each calendar year shall be excluded from the total
quantity of harvested forest products that constitutes the
measure of the taxes under ORS 321.005 to 321.185 and 321.560 to
321.600.
SECTION 2. ORS 321.145 is amended to read:
321.145. (1) The revenue from the taxes levied by ORS 321.005
to 321.185 and 321.560 to 321.600 shall be remitted to the State
Treasurer who shall deposit it in a suspense account established
under the provisions of ORS 293.445.
(2) Notwithstanding the provisions of ORS 291.238, the amount
of moneys necessary to pay refunds of the taxes levied under ORS
321.015 (1) to { - (4) - } { + (5) + } hereby is appropriated
continuously to the Department of Revenue from the suspense
account referred to in subsection (1) of this section, and shall
be used by the department for the payment of all refunds of taxes
levied under ORS 321.015 (1) to { - (4) - } { + (5) + } that
have been audited and approved by the department. Any penalties,
interest and taxes then due from the taxpayer shall be applied in
that order in computing any refund, and only the balance due the
taxpayer, if any, shall be refunded. The department shall on its
records charge each refund against the revenue from the tax with
respect to which the refund is made.
SECTION 3. ORS 321.152 is amended to read:
321.152. (1) Subject to ORS 321.145 (2), moneys remaining in
the Department of Revenue's suspense account referred to in ORS
321.145 on February 10, May 10, August 10 and November 10 of each
year shall be transferred to the various appropriation accounts
described in subsections (2), (3) and (4) of this section.
(2) That part of the moneys derived from taxes levied by ORS
321.015 (1) shall be transferred to the Forest Research and
Experiment Account described in ORS 321.185.
(3) That part of the moneys derived from taxes levied by ORS
321.015 (3) shall be transferred to the State Forestry Department
Account referred to in ORS 526.060. Notwithstanding ORS 291.238,
the moneys transferred to the State Forestry Department Account
under this section are appropriated continuously for and shall be
used by the State Forester, under the supervision and direction
of the State Board of Forestry, for the purposes of administering
the Oregon Forest Practices Act and the forest practices
monitoring program.
(4) That part of the moneys derived from taxes levied by ORS
321.015 (2) shall be transferred to the Oregon Forest Land
Protection Fund described in ORS 477.750.
(5) That part of the moneys derived from taxes levied by ORS
321.015 (4) shall be transferred to the State Forestry Department
Account referred to in ORS 526.060. Notwithstanding ORS 291.238,
the moneys transferred to the State Forestry Department Account
under this section are appropriated continuously for and shall be
used by the State Forester, under the supervision and direction
of the State Board of Forestry, for the purposes of administering
nonindustrial private forest landowner assistance.
{ + (6) That part of the moneys derived from taxes levied by
ORS 321.015 (5) shall be transferred to the General Fund to be
held as miscellaneous receipts available generally to meet any
expense lawfully incurred. + }
SECTION 4. { + The amendments to ORS 321.015, 321.145 and
321.152 by sections 1 to 3 of this 2003 Act apply to forest
products harvest tax reporting periods beginning on or after
January 1, 2004. + }
SECTION 5. ORS 321.017 is amended to read:
321.017. (1) In addition to the taxes levied under ORS 321.015
(1) to (4), there hereby is levied a privilege tax upon taxpayers
on the harvesting of all merchantable forest products harvested
on forestlands on or after July 1, 1991, in the amount provided
in subsection (2) of this section.
(2) The rate of tax levied in subsection (1) of this section
shall be established annually at the beginning of each calendar
year by the board of directors of the institute, at a rate not to
exceed 75 cents per thousand feet, board measure, on all
merchantable forest products harvested on forestlands. The
maximum tax rate prescribed by this subsection may be increased
by the board of directors in an amount equal to the previous
year's increase in the Consumer Price Index (Portland area -- all
items) as published by the Bureau of Labor Statistics of the
United States Department of Labor for the Portland, Oregon, area.
(3) The tax shall be measured by and be applicable to each per
thousand feet, board measure, and such shall be subject to and
determined by the procedures and provisions of ORS 321.015 (5)
and (6) { + (2001 Edition) + }.
(4) The tax levied by subsection (1) of this section shall be
due and payable to the Department of Revenue in the manner and
procedure, including penalties and interest, as set forth for the
collection of the privilege tax in ORS 321.005 to 321.185.
(5) The revenue from the tax levied by subsection (1) of this
section shall be remitted to the State Treasurer who shall
deposit it in a suspense account established under ORS 321.145
(1). After payment of refunds, which shall be paid in the same
manner as other forest products harvest tax refunds are paid in
ORS 321.145 (2), the balance of the additional tax imposed under
subsection (1) of this section shall be deposited in the Oregon
Forest Resources Institute Fund.
{ + (6) Taxes may not be imposed under this section for any
forest products harvest tax reporting period beginning on or
after January 1, 2004. + }
SECTION 6. { + Section 7 of this 2003 Act is added to and made
a part of ORS 321.005 to 321.185. + }
SECTION 7. { + (1) As used in this section, 'qualified
forestry resource organization' means an organization established
pursuant to sections 15 to 24 of this 2003 Act.
(2) A taxpayer subject to tax under ORS 321.015 (5) during the
year may claim a credit against the tax imposed under ORS
321.015.
(3) The amount of the credit shall equal the lesser of:
(a) The amount of forest products harvest tax under ORS 321.015
(5) during the year; or
(b) The amount contributed to a qualified forestry resource
organization during that year.
(4) The credit shall be claimed on a form prescribed by the
Department of Revenue and containing the information required by
the department. The claim for the credit shall be made at the
time of filing and shall accompany the tax return filed under ORS
321.045. + }
SECTION 8. { + Section 7 of this 2003 Act applies to forest
products harvest tax years beginning on or after January 1,
2004. + }
SECTION 9. { + Section 10 of this 2003 Act is added to and
made a part of ORS chapter 316. + }
SECTION 10. { + (1) As used in this section, 'qualified
forestry resource organization' has the meaning given that term
in section 15 of this 2003 Act.
(2) If a taxpayer's contribution to a qualified forestry
resource organization is deducted from federal adjusted gross
income for the tax year for federal tax purposes and the taxpayer
claims a credit against forest products harvest taxes under
section 7 of this 2003 Act with respect to the contribution, the
taxpayer shall add the amount of the contribution back to federal
taxable income for Oregon tax purposes. + }
SECTION 11. { + Section 12 of this 2003 Act is added to and
made a part of ORS chapter 317. + }
SECTION 12. { + (1) As used in this section, 'qualified
forestry resource organization' has the meaning given that term
in section 15 of this 2003 Act.
(2) If a taxpayer's contribution to a qualified forestry
resource organization is deducted from federal adjusted gross
income for the tax year for federal tax purposes and the taxpayer
claims a credit against forest products harvest taxes under
section 7 of this 2003 Act with respect to the contribution, the
taxpayer shall add the amount of the contribution back to federal
taxable income for Oregon tax purposes. + }
SECTION 13. { + Sections 10 and 12 of this 2003 Act apply to
tax years beginning on or after January 1, 2004. + }
SECTION 14. { + Sections 15 to 24 of this 2003 Act are added
to and made a part of ORS chapter 526. + }
SECTION 15. { + As used in sections 15 to 24 of this 2003 Act:
(1) 'Producer' means a producer of forest products and includes
any person, partnership, association, corporation, cooperative or
other business entity involved in the growing, harvesting or
producing of timber or timber products. 'Producer ' does not
include a landowner who meets the requirements of section 17
(2)(c) of this 2003 Act.
(2) 'Producer class' means a class of producers established
under section 24 of this 2003 Act.
(3) 'Qualified forestry resource organization' means an
organization that has been qualified under section 23 of this
2003 Act as meeting the requirements of sections 15 to 22 of this
2003 Act. + }
SECTION 16. { + In order for an entity to be a qualified
forestry resource organization, all of the following must occur:
(1) Members of the board of directors for the organization must
be selected as provided in section 17 of this 2003 Act and must
meet the qualifications for board membership set forth under
section 18 of this 2003 Act.
(2) The organization must be a nonprofit corporation that is
also an organization described in section 501(c) of the Internal
Revenue Code.
(3) The organization must have articles of incorporation and
bylaws that meet the requirements of sections 19, 20 and 21 of
this 2003 Act.
(4) The organization must be qualified as provided in section
23 of this 2003 Act. + }
SECTION 17. { + (1) The board of directors of a qualified
forestry resource organization shall consist of seven elected
voting members, four appointed voting members and two appointed
nonvoting members.
(2)(a) The State Forester shall solicit nominations and conduct
an election for elected members of the board.
(b) Except for the member elected for the position described in
paragraph (c) of this subsection, each elected member of the
board shall meet the member's producer class qualifications at
the time of election. Two members shall be elected from each
producer class.
(c) One member shall be elected who owns between 100 and 2,000
acres of forestland and who has no direct financial interest in
any forest products processing activity.
(3)(a) Eligible voters for the elected members described in
subsection (2)(b) of this section shall be only those persons who
are producers in the same producer class as the member being
elected.
(b) Eligible voters for the elected member described in
subsection (2)(c) of this section shall be only those persons who
own between 100 and 2,000 acres of forestland and who are not
members of a producer class.
(4) The members described in subsection (2) of this section
shall appoint the following voting members of the board:
(a) One member who is an hourly wage employee of a producer or
a person who represents such employees. The member must be a
citizen of the United States and a bona fide resident of this
state.
(b) Three members representing Oregon's diverse producer and
forest landowner classes and geographic regions.
(5) In addition to the members of the board described in
subsections (2) and (4) of this section, the following
individuals shall be nonvoting members of a qualified forestry
resource organization:
(a) The Dean of the College of Forestry at Oregon State
University, or an individual designated by the dean; and
(b) An individual jointly appointed by the President of the
Senate and the Speaker of the House of Representatives to
represent the public. The public representative may not be a
member of or affiliated with an organization or business in the
timber or forest products industry or an organization or business
known to support environmental or conservation issues. + }
SECTION 18. { + Each member of the board of directors of a
qualified forestry resource organization described in section 17
(2) and (4)(b) of this 2003 Act shall have the following
qualifications:
(1) Be a citizen of the United States.
(2) Be a bona fide resident of this state.
(3)(a) Be a producer in this state or be an employee of such a
producer; or
(b) Be a person who owns between 100 and 2,000 acres of
forestland in this state on which harvest taxes are paid but has
no direct financial interest in any forest products processing
activity.
(4) Have been actively engaged in producing forest products for
a period of at least five years.
(5) Derive a substantial proportion of income from the
production of forest products.
(6) Have demonstrated, through membership in producers'
organizations or organizations representing landowners who meet
the requirement of section 17 (2)(c) of this 2003 Act, a profound
interest in the development of Oregon's forest products
industry. + }
SECTION 19. { + The articles of incorporation or bylaws of a
qualified forestry resource organization shall provide for the
following purposes, objectives, duties, powers and functions of
the organization:
(1) To enhance and provide support for Oregon's forest products
industry.
(2) To increase public understanding of forestry practices and
the use and benefits of forest products.
(3) To support educational and cooperative efforts among
private forest landowners and within the forest products industry
to:
(a) Practice good stewardship of the land, and to protect water
and other public resources to the maximum extent practicable;
(b) Encourage the conversion of underproductive rural lands to
forest uses, and to provide information to private landowners on
the means to facilitate such conversions;
(c) Encourage, facilitate and assist private forest landowners
to meet or exceed state and federal regulations governing forest
operations;
(d) Evaluate and communicate to private forest landowners the
stewardship responsibility expectations of the public; and
(e) In cooperation with the State Forestry Department, Oregon
State University and other appropriate government or private
entities, serve as a clearinghouse for the dissemination of
information to private forest landowners, through conferences,
workshops and other means, about modern land management
practices.
(4) To conduct research to help facilitate continued
improvement in wood utilization and in secondary wood products
manufacturing and disseminate reliable information based upon
this research.
(5) To publish and sell publications and other materials
relating to any program or function authorized by the articles of
incorporation or bylaws of the organization. + }
SECTION 20. { + In order for a forestry resource organization
to be qualified under section 23 of this 2003 Act, the articles
of incorporation or bylaws of the organization must provide that:
(1) Those members of the board of directors described in
section 17 (2), (4) and (5)(b) of this 2003 Act shall serve a
term of office of three years. An elected member may be reelected
to a subsequent term and an appointed member may be reappointed
to a subsequent term.
(2) Terms of office begin on the first day of the month
following the date of election or appointment, except that
elected members of a board may meet at any time following their
election for the purpose of appointing the members described in
section 17 (4) of this 2003 Act.
(3) If there is a vacancy on the board of an elected member
position, other than a vacancy caused by the expiration of a
term, the board shall fill the vacancy by appointment for the
remainder of the unexpired term with a person who meets the same
qualifications under section 18 (3) of this 2003 Act as the
member whose position was vacated. + }
SECTION 21. { + In order for a forestry resource organization
to be qualified under section 23 of this 2003 Act, the articles
of incorporation or bylaws of the organization must provide that
the organization may not be dissolved for two years following
qualification under section 23 of this 2003 Act and thereafter
may be dissolved only as follows:
(1) Producers of 35 percent or more of all merchantable forest
products harvested on forestland in the previous year may
petition the State Forester to hold a referendum on dissolution
of the organization. Upon receipt of the petition, the State
Forester shall conduct the referendum. The referendum shall be
held in such manner as the State Forester, by rule, may
prescribe.
(2) If the State Forester determines that producers who
harvested 60 percent or more of all merchantable forest products
harvested on forestland in the previous year have voted in the
referendum in favor of dissolution of the organization, the
organization shall terminate its activities and shall dispose of
its assets as prescribed under ORS chapter 65.
(3) If a referendum on dissolution of the organization is held
and there are insufficient votes in favor of dissolution, a
subsequent referendum on dissolution may not be held within two
years from the date of the determination of the result of the
referendum conducted by the State Forester. + }
SECTION 22. { + The articles of incorporation or bylaws of a
qualified forestry resource organization may include any other
provisions that are consistent with sections 19, 20 and 21 of
this 2003 Act. + }
SECTION 23. { + (1) A forestry resource organization may apply
for qualification by filing a written request for qualification
with the State Forester. At the time the request is made, the
organization shall supply the forester with:
(a) A copy of the articles of incorporation and bylaws of the
organization;
(b) The names of the members of the board of directors of the
organization and sufficient background information about each
member to allow the forester to determine if the requirements of
sections 17 and 18 of this 2003 Act have been met; and
(c) Any other information the forester may require.
(2) The State Forester shall review the materials and
information submitted under subsection (1) of this section and
shall qualify the organization as a qualified forestry resource
organization if the forester determines that the requirements for
qualification under sections 15 to 22 of this 2003 Act have been
met by the organization.
(3) If the State Forester determines that the requirements for
qualification under sections 15 to 22 of this 2003 Act have not
been met, the forester may not qualify the organization. A
determination to not qualify an organization may be appealed in
the manner of a contested case under ORS 183.310 to 183.550. + }
SECTION 24. { + For purposes of sections 15 to 24 of this 2003
Act, the following are established as producer classes:
(1) A small producer class consisting of producers of less than
20 million board feet of merchantable forest products annually;
(2) A medium producer class consisting of producers of at least
20 million board feet of merchantable forest products annually,
but less than 100 million board feet of merchantable forest
products annually; and
(3) A large producer class consisting of producers of at least
100 million board feet of merchantable forest products
annually. + }
SECTION 25. { + The Oregon Forest Resources Institute is
abolished July 1, 2004. + }
SECTION 26. { + (1) After the effective date of this 2003 Act
and prior to July 1, 2004, the Oregon Forest Resources Institute
shall convert its assets to cash proceeds, deposit those proceeds
in the Oregon Forest Resources Institute Fund and do all other
things necessary to terminate the activities of the institute.
(2) On July 1, 2004, all moneys in the Oregon Forest Resources
Institute Fund shall be transferred to the Forest Research and
Experiment Account. + }
SECTION 27. ORS 321.684 is amended to read:
321.684. (1) The Department of Revenue may:
(a) Furnish to any taxpayer or authorized representative, upon
request of the taxpayer or authorized representative, a copy of
the taxpayer's timber tax return filed with the department for
any year, or a copy of any report filed by the taxpayer in
connection with the return.
(b) Publish a list of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics classified so as to prevent the
identification of taxable value or any particulars contained in
any report or return.
(d) Disclose a taxpayer's name, address and social security
number or employer identification number to the extent necessary
in connection with the processing and mailing of forms for any
report or return required in the administration of ORS 321.045,
321.322, 321.435 and 321.950.
(e) Disclose names and addresses of taxpayers filing under ORS
321.282 (4) and 321.432 to Oregon State University pursuant to
surveys and programs related to forest management.
(f) Disclose to the State Forester, upon request of the
forester, for the purpose of soliciting nominations and
conducting elections referred to in { - ORS 526.610 - } { +
section 17 of this 2003 Act + }, the names of producers meeting
producer class qualifications established under { - ORS
526.610 - } { + section 24 of this 2003 Act + } who filed
forest products harvest tax returns.
(g) Disclose appraisal data collected to make determinations of
specially assessed value of forestland under ORS 321.201 to
321.222 to any member of a forestland value advisory committee
the department has convened under ORS 321.213.
(2) The department also may disclose and give access to
information described in ORS 321.682 to:
(a) The Commissioner of Internal Revenue or authorized
representative, for tax purposes only.
(b) The United States Forest Service, Bureau of Land Management
and the State Forestry Department pursuant to their regulatory
programs and for investigative purposes related to timber theft.
(c) The Attorney General, assistants and employees in the
Department of Justice or other legal representative of the State
of Oregon, to the extent the department considers disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 321.045, 321.322,
321.435 and 321.950.
(d) Employees of the State of Oregon, other than the Department
of Revenue or Department of Justice, to the extent the department
considers disclosure or access necessary for such employees to
perform their duties under contracts or agreements between the
department and any other department, agency or subdivision of the
State of Oregon in the department's administration of the tax
laws.
(e) The Legislative Revenue Officer or the authorized
representative upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person or the volume of harvest and value
reported on individual returns and reports.
(f) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
as Auditor of Public Accounts under section 2, Article VI of the
Constitution of the State of Oregon.
(3) Each officer or employee of the department and each person
described or referred to in subsection (2)(b) to (f) of this
section to whom disclosure or access to the tax information is
given under subsection (2) of this section or any other provision
of state law, prior to beginning employment or the performance of
duties involving such disclosure or access, shall be advised in
writing of the provisions of ORS 321.682 and 321.686 relating to
penalties for the violation of ORS 321.682, and shall, as a
condition of employment or performance of duties, execute a
certificate for the department, in a form prescribed by the
department, stating in substance that the person has read these
provisions of law, that the person has had them explained and
that the person is aware of the penalties for the violation of
ORS 321.682.
SECTION 28. { + ORS 321.017, 526.600, 526.605, 526.610,
526.615, 526.620, 526.625, 526.630, 526.632, 526.635, 526.640,
526.645, 526.650, 526.655, 526.660, 526.665, 526.670, 526.675,
526.680 and 526.685 are repealed on July 1, 2004. + }
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